CHK investor presentation Utica update

CHK%20Latest_IR_Presentation%20062512.pdf

   This is the first time I've seen CHK break down production for Utica wells into oil, wet gas & dry gas. See page 12 of the presentation. Also, I thought it interesting that Utica well results closely align with Eagle Ford results, shown on an earlier page. 

   CHK updates their investor presentation at least monthly and posts it on their website. The Utica production numbers are pretty impressive, in my opinion. If one annualizes production of each commodity and multiply by current market prices, the total annual production value per well gets quite large. Left unsaid is the production decline rate, purported to be large. They probably don't have sufficient data yet to speculate on decline rates.

   Of course, payout to landowners will vary widely based on lease terms, unit size, acreage in the unit, etc. But these results represent the best solid data I've seen.

BluFlame

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Permalink Reply by Bluflame on June 26, 2012 at 4:53am

Marcus,

  Unfortunately, I'm on the long side of CHK shares. Carl Icahn has never made my "favorite person" list, but my fate with CHK shares seems to lie partially in his hands. 

   "Forewarned is forearmed". At this stage, probably best for O&G companies not to change their EUR formulae until better data is available. Why further confuse a flawed process? Informed investors can draw their own conclusions and apply a "credibility discount" to published EUR numbers.

BluFlame

   

Permalink Reply by Bluflame on June 26, 2012 at 5:18am

Marcus,

  It just occurred to me that the EUR formula falls into the category of "If you can't dazzle them with brilliance, baffle them with bull****". I'd wager that even our mutual friend Mr. McClendon finds it difficult to explain the formula!

BluFlame

Permalink Reply by Bluflame on June 26, 2012 at 8:53am

New positive perspective on CHK.

BluFlame

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Permalink Reply by Bluflame on June 27, 2012 at 5:17am

Here is a very recent (yesterday) interview with Archie Dunham, the new Chairman of CHK. I think it provides a strong indication of what we can expect from CHK both short and medium term. Very interesting.

BluFlame

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